Secretary of Embassy White to the Secretary of State
[Extract]
American Embassy,
London,
December 23, 1899.
Sir: I have the honor to inform you that I
duly received your letter of 28th ultimo;2 that Captain von Christmas Dirckinck Holmfeld, therein referred
to, arrived in London on Saturday, the 9th
[Page 458]
instant, and that I had an interview with him that
same evening, during which it was agreed that, upon his return to
Copenhagen, after spending a few days in Paris, he should arrange a
meeting between the Danish Prime Minister, Mr. Hoering, who is also
Minister of Finance, and myself.
On the 14th instant, I received the telegram in French from Captain von
Christmas, of which I enclose a copy herewith, stating that the Prime
Minister would be happy to receive me, and on Tuesday evening, the 19th
instant, I arrived at Copenhagen. Captain von Christmas met me at the
station, and informed me that the Prime Minister, being unable to speak
English or French or even much German, had requested the Minister of
Foreign Affairs, Admiral Ravn, who is also Minister of Marine, to see
me.
On Wednesday, the 20th, I accordingly called at the Foreign Office,
accompanied by Captain von Christmas, and was promptly received alone by
the Minister.
I informed his excellency that the object of my visit was to inquire
confidentially what the intentions of his Government might be in respect
to the Danish West India Islands of St. Thomas, St. John and St.
Croix—an intimation having reached my Government that Denmark is willing
to cede them to another Power.
The Minister replied that his Government would be willing to cede the
islands to the United States for a consideration, and I then asked him
to let me know the exact terms upon which they would be ceded. He said,
however, that it would be impossible for him to do this; but that if the
United States should be disposed to make an offer for the islands, it
would be seriously considered by the Danish Government.
Admiral Ravn intimated that, after the treatment Denmark had received
from the United States in connection with the agreement made by Mr.
Seward, to take over two of the islands, which the Senate declined to
ratify,3 it would be impossible for his
Government to appear even indirectly to be offering them again to us,
and for this reason he could not fix any terms for their cession until a
formal proposal should be received from us.
After some conversation and several attempts on my part to induce the
Minister to give me some idea confidentially of the terms on which
Denmark would part with the islands, he said that he thought between
four and five millions of dollars would probably cover the advances made
by the Treasury and also the amount required for the capitalization of
certain pensions which would be necessary in the event of the cession of
the islands to another Power.
I then asked him to be good enough to explain to me the nature of the
debt of the islands and the manner in which it is held; to which he
replied that he had asked two heads of departments from the Ministry of
Finance to meet me and furnish these particulars. He thereupon summoned
the Under Secretary for Foreign Affairs, who took me to his room, where
I met the officials in question, who stated that the debt of the three
West India Islands owned by Denmark, consists solely of loans made from
time to time by the Danish
[Page 459]
Treasury to cover the deficits in the annual budgets; and they furnished
me with a written document, of which I enclose a copy herewith, and from
which the figures in my cipher telegram of this date, are taken. A
translation of this cablegram is also enclosed.
I furthermore obtained copies of the budgets for the current year, in the
English and Danish languages, of the Islands of St. Thomas and St. John,
which form one municipality, and of St. Croix, which is a separate
municipality; and I forward them herewith for your information. The
items of revenue and expenditure will be found therein, and you will
observe that the revenue of St. Thomas and St. John is estimated at
$95,520 and the expenditure at $179,186.00, while those of St. Croix are
respectively $154,865 and $253,073.64, showing a deficit in the three
islands for the present year of $181,874,
The figures, I may mention, in the budget drafts, are dollars, whereas
those in the accompanying statement from the Ministry of Finance are in
Danish krone—the equivalent of about 27 cents, United States
currency.
I have every reason to believe, notwithstanding the reserve of the
Minister of Foreign Affairs in respect to terms, that the Danish
Government is very anxious to be relieved of the care and expense of the
islands, and that an offer of three and a half millions of dollars will
be accepted.
Since my return to London to-day, I have received a telegram from Captain
von Christmas, stating that the King of Denmark wishes the islands, if
taken over by us, to be J’ inside United States customs’ sphere,” which
I infer to mean that His Majesty would like any offer we may make for
the islands to be subject to that condition, although nothing was said
to me relative thereto by the Foreign Minister, nor by the other Danish
officials whom I saw. I understood, however, that the Ministry had been
in frequent communication with the King relative to my expected visit,
the details of which were doubtless at once communicated to him; and I
assume that Captain v. Christmas’ telegram embodies a portion of the
King’s reply. * * *
I have [etc.]
[Inclosure 1]
danish west indies
The Danish West Indies comprise the Islands of Santa Cruz, St. Thomas
and St. John. The areas are: Santa Cruz, 83 square miles; St.
Thomas, 23 square miles; St. John, 21 square miles (Longman’s
Gazetteer and Johnson’s Cyclopedia). The Statesman’s Year Book,
1900, says that by the last census (1890) the population of the
islands was estimated at 32,789, and that it consists mainly of free
negroes engaged in the cultivation of sugar cane. Consul Van Home,
of St. Thomas, in a report to appear in Commercial Relations,
1901,4 says that the population has declined, and that
there is general business depression, due (according to a report in
Commercial Relations, 1900) to the crisis in the sugar industry.
The trade of the Danish West Indies with the principal countries
(according to the official returns of the countries named) for the
most recent calendar years for which statistics are available, is as
follows:
[Page 460]
|
Imports from Danish West Indies |
Exports to Danish West Indies |
| United States (1900) |
$444,050 |
$651,996 |
| Great Britain (1900) |
2,511 |
429,770 |
| France (1899) |
64,462 |
1,184,055 |
| Germany (1899) |
None |
10,710 |
| Denmark (1899) |
23,272 |
24,924 |
From the above, the imports into the Danish West Indies from the
principal countries may be stated at $2,301,455, and the exports at
$534,295 making the value of the total trade some $2,835,750.
Exports consist chiefly of sugar, bay rum and Shells. Most of the
sugar is sent to the United States, and represents nearly the entire
export of the islands to our country.
United States Consul Van Home, in a report appearing in the Review of
the World’s Commerce, 1900, says:
“St. Thomas is preeminently a coaling station; 100,000 tons were
handled twice in 1899. All of this coal is American——The United
States is the natural buying and selling market of the Danish West
Indies.”
Trade with all Countries
| Exports (estimated) |
$654,122 |
| Imports |
1,142,038 |
| Total trade |
1,796,160 |
The statement of imports is taken from a report by U. S. Consul Van
Home (Commercial Relations, 1898, Volume I, p. 708) and is for the
fiscal year ending March 31, 1898. The exports are estimated from
the’ statements of trade of Great Britain, Germany, France, Denmark
and the United States with the Danish West Indies, in 1897, the
latest year for which figures from all of these countries can be
obtained. Spanish figures contain no mention of trade with the
Danish West Indies. The countries named have most of the trade;
exports may have been sent to other West Indian islands, but as the
exports consist chiefly of sugar, bay rum, shells, etc., they are
probably destined for re-exportation, and the majority of the
exports, it may be assumed, is sent directly.
Trade with the United States, 1898
(U. S. Treasury figures)
| Imports into United States from Danish West Indies |
$327,759 |
| Exports from United States to Danish West Indies |
707,622 |
| Total trade |
1,035,381 |
Of the imports, $317,244 was in dutiable and $10,515 in free goods.
Of the exports, $704,034 was in goods of United States origin, and
$3,588 in foreign goods.
The chief articles in the trade were:
| Imports into the United States: |
|
|
|
|
Sugar |
lbs |
14,832,991 |
$312,446 |
|
Spirits, distilled |
pf. gal |
2,138 |
811 |
| Exports from the United States: |
|
|
|
|
Corn meal |
barrels |
17,025 |
33,768 |
|
Wheat flour |
barrels |
34,085 |
178,730 |
|
Other breadstuffs |
|
|
24,980 |
|
Coal |
tons |
64,770 |
150,001 |
|
Cotton, manufactures of |
|
|
21,004 |
|
Iron & steel & manufactures of |
|
|
17,881 |
|
Leather & manufactures of |
|
|
25,554 |
|
Bacons, hams & pork |
lbs |
693,916 |
42,099 |
|
Lard |
lbs |
501,454 |
31,848 |
|
Tobacco leaf |
lbs |
188,422 |
14,661 |
|
Wood and manufactures of |
|
|
25,412 |
[Page 461]
Totals of Trade with United States, 1899
The United States Treasury figures thus far issued give totals only
for the fiscal year ended June 30, 1899. They are:
| Imports into United States from Danish West Indies |
$599,328 |
| Exports from United States to Danish West Indies |
498,066 |
| Total trade |
1,097,394 |
Trade with Other Countries, 1897
(Compiled from official statistics of the countries
named)
| Denmark: |
|
|
Imports from Danish West Indies |
$109,612 |
|
Exports to Danish West Indies |
42,448 |
|
Total trade |
152,060 |
| Great Britain: |
|
|
Imports from Danish West Indies |
97,923 |
|
Exports to Danish West Indies |
267,650 |
|
Total trade |
365,573 |
| Germany: |
|
|
Imports from Danish West Indies |
40,698 |
|
Exports to Danish West Indies |
50,932 |
|
Total trade |
91,620 |
| France: |
|
|
Imports from Danish West Indies |
38,600 |
|
Exports to Danish West Indies |
216,180 |
|
Total trade |
254,780 |
Trade with Great Britain and France, 1898
Great Britain and France are the only countries from which official
returns of trade for 1898 are available. These are—
| Great Britain: |
|
|
Imports from Danish West Indies |
$108,678 |
|
Exports to Danish West Indies |
259,209 |
|
Total trade |
367,887 |
| France: |
|
|
Imports from Danish West Indies |
57,900 |
|
Exports to Danish West Indies |
117,730 |
|
Total trade |
175,630 |
Consul Stewart of St. Thomas, in Commercial Relations, 1896–7, says
the population of the island is 12,000, nine-tenths of whom are
colored. No food products are raised except cattle for home
consumption, and market vegetables. Almost all food supplies (salt
provisions, canned goods, flour, meal, etc.) come from the United
States. United States Consular Reports for 1899, as yet, give only
fragmentary returns.
The Stateman’s Year Book, 1899, says the Danish West Indies are
inhabited mostly by free negroes engaged in the cultivation of sugar
cane. The trade with Denmark, formerly considerable, has fallen off.
Exports to Great Britain consist chiefly of sugar, and the principal
imports from that country are of cotton goods and machinery.
[Page 462]
[Inclosure 2]
Statement handed to Secretary of Embassy White by
Danish Treasury Officials
| On the 31st of March, 1899: |
Kronen |
Ore |
| A. |
1. |
Due to the Danish Treasury by West Indian colonial
funds |
7,924,915 |
43 |
|
2. |
Lent by the Danish Treasury to the community of St.
Croix |
567,366 |
72 |
|
|
With interest accumulated |
340,419 |
90 |
|
3. |
Circulating West Indian credit bills |
472,060 |
|
|
The outstanding debt augmenting yearly by about
550,000 kronen and the accumulated interests 22,694 kronen
66 ore. |
|
|
|
|
|
9,304,762 |
05 |
|
4. |
The charge that would arise upon the Danish Treasury from
pensions, capitalized (roughly) |
4,662,000 |
|
|
|
|
13,966,762 |
05 |
| B. |
Public buildings and articles of
inventory— |
|
|
|
|
Public foundations St. Croix5
|
78,108 |
21 |
|
|
St. Thomas and St. John |
100,941 |
84 |
|
|
|
179,050 |
05 |
| C. |
The Danish Treasury owns the plantations Sinfram,
Work and Rest, and Grange, at St. Croix, and a lot
(Cruxburg) at St. John rated |
191,984 |
68 |
|
Amounts lent by the Treasury to private
individuals at St. Croix |
276,731 |
88 |
|
|
|
488,716 |
56 |
| D. |
To the private Society (lim) the St. Croix United
Sugar Works the Treasury has lent and during the last ten
years administered the works |
1,414,784 |
57 |
|
Interests accumulated of loan |
870,579 |
21 |
|
Further due the Treasury |
504,456 |
44 |
|
|
|
2,789,820 |
22 |
[Inclosure 3]
Captain von
Christmas to Secretary of
Embassy White
[Telegram—Translation]
Henry White, Esq. Prime Minister delighted
to receive you. When do you arrive?
